17.07.202613:22:00UTC+00Gold Posts Weekly Loss as Rising Oil Prices Boost Rate Expectations

Gold slipped to about $3,970 an ounce on Friday, leaving it more than 3% lower for the week. The decline came as escalating tensions between the US and Iran pushed oil prices higher, stoking inflation concerns and bolstering expectations that the Federal Reserve will keep interest rates elevated.

Geopolitical risks intensified after Tehran launched new strikes on US facilities in the Middle East, following a sixth straight night of US attacks on Iranian military targets that continued to disrupt shipping through the Strait of Hormuz.

Fed officials added to the hawkish tone. Dallas Fed President Lorie Logan called for an additional rate increase, while Fed Vice Chair Philip Jefferson said he would support tighter policy if inflation fails to show near-term improvement. Futures markets now imply roughly a 50% probability of a rate hike in September.

On the economic data front, both US consumer and producer prices declined in June, largely reflecting lower energy costs, while import prices unexpectedly rose.